The Internet of Things (IoT) is becoming more significant as it rapidly alters how we live and do our daily activities. New technology has an impact on nearly every area of our lives and has the ability to change whole sectors, including commercial real estate.
(Suggested Read : What is IoT?)
What is the Internet of Things (IoT) and Commercial Real Estate?
IoT is a computer term that represents the notion of ordinary physical things being linked to the Internet and being able to identify themselves to other devices, according to its definition. As a result, they establish a network of smart gadgets that can converse with one another.
The goal of the Internet of Things is to enable quicker connectivity and maximum automation of various operations. In this approach, the Internet of Things helps consumers and businesses save time and money while lowering overall operational expenses.
Commercial real estate, on the other hand, refers to property that is utilized solely for business or to offer a workspace rather than a residence. It encompasses a wide range of business-related facilities, from small thrift stores to large retail complexes.
IoT may not appear to be very important at first for the real estate sector, which depends largely on raw materials such as cement, concrete, and steel.
However, a deeper examination indicates that the Internet of Things (IoT) is dramatically altering the way business is conducted, with shifting client preferences driving demand and transactions. IoT will become increasingly crucial to organizations in the near future.
(Also Read: Applications of IoT in Daily Life )
But how does the Internet of Things affect this industry? What makes smart technology so important to commercial real estate's evolution?
IoT in the Real Estate Industry
The rise of smart real estate is being fueled by disruptive technological advances. The gadgets and sensors that are used to collect data have advanced dramatically. This allows commercial real estate companies to separate themselves from the competition by offering smart solutions for controlling various systems in clients' homes, workplaces, and public areas.
The transfer of decision-making power from baby boomers to millennials has resulted in a significant shift in real estate customer preferences. Gen Y, fueled by a rent-by-choice culture, is looking for real estate investment possibilities early on and pushing technological efforts in the area.
IoT is now a part of people's homes, workplaces, shopping malls, and parking lots, among other locations. IoT has the ability to deliver insights that will transform the way we live by capturing data from sensors in the real estate industry and combining it with the power of analytics.
Read this document from Deloitte on “How IoT tech aims to add value to Real Estate Industry”
Watch this video on “IoT in Real Estate and Property Management”
6 Ways IoT Improves Commercial Real Estate
Although the Internet of Things has a significant influence on commercial real estate, certain of its characteristics have proven to be more vital than others. Our objective is to illustrate how the six most significant components of IoT in commercial real estate are changing this massive sector. Let's have a peek, shall we?
( Also Read: Examples of Internet of things )
Efficiency of the HVAC system
Customers want more automated solutions to handle their everyday activities, which will make their lives simpler. The Internet of Things is radically changing the way we think about heating, ventilation, and air conditioning (HVAC). As gadgets become more intelligent, they will be able to make their own estimates and choices.
A smart HVAC system at home, for example, will detect the ambient temperature and the homeowner's schedule and turn it on automatically before the occupant enters the house. This will improve the user experience while also allowing for more efficient system functioning, resulting in greater economic advantages.
Efficiency of lighting
Another well-known advantage of IoT in real estate is this. The concept is the same as in the previous example: instead of turning on the lights across the floor or building, IoT only does so in offices where people are still present. It's just the beginning, but it demonstrates the relevance of IoT in commercial real estate.
(Related: IoT in Lighting )
Smart commercial real estate management may also assist firms in reducing excessive traffic and ensuring that their facilities run more smoothly. Large retail malls are already using sophisticated indoor navigation systems to identify bottlenecks and modify floor layouts to remove obstacles and make wayfinding simpler.
Customers are much pleased as a result, and they have more time to shop and spend in stores. This, of course, makes shopping mall owners very happy since their businesses earn more profits.
Features of Smart Real Estate
Because it analyses massive amounts of data in real-time, the Internet of Things brings benefits to the workplace. As a result, smart systems may be utilized to optimize workplaces as well.
You'll be able to figure out where your employees spend most of their time during the day and identify rooms or offices that provide no use. As a tenant, you can save money by doing so, while facility management can rent the space to another team.
Enhanced Employee Experience
With everything we've discussed so far, it's apparent that the Internet of Things can improve the overall employee experience in commercial real estate. There are several methods to make workspaces seem more comfortable, ranging from improved air quality to increased natural warmth and lighting.
Resale value is higher
Installing smart appliances and home devices can significantly increase the value of your property when it comes time to sell it. In addition to increasing the property's worth, smart technology will make it more appealing to many younger clients and make it simpler to sell.
( Also Read : Top Real Estate Startups )
Smart Buildings and Management Systems
By combining commercial real estate with IoT technologies, smart buildings take the notion of smart houses to the next level. Building management systems (BMS) have been created as a result of the convergence of property management and IoT systems, which increase the capabilities beyond what could be achieved by traditional automation.
Using IoT technologies in property management opens up new possibilities for commercial real estate firms to generate value in a variety of ways.
( Related: Smart City under IoT ecosystem )
Greater efficiency creates value
Increasing the value of a company by running it more effectively is a tried and true method. More efficient building performance will attract renters and keep them pleased in commercial real estate holdings.
Smart technology that allows for real-time management of air conditioning, security, and lighting systems improves the occupant experience while also saving money on energy expenses.
Differentiation creates value
Commercial properties that provide innovative technology solutions might help them stand out from the competitors. When repairs are needed, innovative use of the Internet of Things for predictive maintenance can reduce the impact on renters.
Work can be planned during non-peak hours and completed before an issue arises. The information gathered about tenant mobility around the facility can help in making educated judgments about cooperation and designing effective workflows.
Making House Hunting Easy
Smart Real Estates powered by IoT may make house hunting a breeze
At some time in our lives, most of us will need to rent a home or apartment. The rise of IoT in real estate has brought with it new ways to find our future homes.
Many individuals are already used to viewing flats or homes via smartphone applications rather than visiting each location in person. They help potential consumers save time and energy by allowing them to focus on a few sites to visit in person.
Some mobile applications demonstrate innovative IoT use in real estate. These one-of-a-kind solutions employ an IoT-powered method to display properties without the need for an agent to be there.
These come with a smartphone app that displays homes and scheduled viewings for potential clients.
The safe procedure validates viewers' identities and frees up the real estate agent till the transaction is completed. It boosts the real estate agency's productivity and allows consumers to look at properties at their leisure.
What does the future hold for smart home technologies and the real estate market?
The entrance of smart home solutions into the real estate market was the most significant shift ever anticipated, and residents' acceptance of the contemporary way of living a smart life was the game-changer for the industry.
With the diverse needs of purchasers, the home automation trend will increase in the near future. The latest craze in the industry is smart houses. A real estate listing's development is aided by home automation. One of the most effective methods to entice a potential buyer is to incorporate smart home technology.
( Also Read: Use of AI in Real Estate )
As a result, we can be confident that as technology advances, house purchasers will be drawn to smart homes for the conveniences they provide. However, with these technological advancements in commercial and residential real estate, the future of real estate looks brighter:
High-end senior living with cutting-edge security and flexibility
real estate-as-a-service concept providing an exceptional user experience
cutting-edge security methods like iris recognition cameras
And much more to come in the future…
Watch this video on “ Future of Smart City : Smart Real Estate”:
IoT is undeniably infiltrating and shaping the real estate sector in a variety of ways, and it will continue to do so in the future. This technology, which predicts future outcomes using collected data, raises homeowners' awareness of household functions.
It has also increased the value of homes on the market. When selling a property, mediators must consider if the home has IoT capabilities as part of the value offer. Agents should also consider how IoT technology may help them improve their personal work competency and generate prospective leads.